Semester Report First Half 2008

Transcription

Semester Report
First Half 2008
SEMESTER REPORT FIRST HALF 2008
1
To the Banesco Community: Employees,
Clients, Stockholders, and Social Partners
The first half of 2008 rendering of account
shown in this financial statement is more than
just a privilege. It is a qualitative breakthrough,
which could easily deemed historic and unique
in Venezuela because, in addition to our
employees, clients and social partners _regular
readers of our report_ it now counts on a new
large and significant audience community: over
40 thousand new Banesco stockholders, that is,
over 40 thousand citizens who have trusted in
the values, management and sense of country
indicators which are part of our business culture,
and became stockholders of this financial
organization during this first half of year.
We would like to confirm in this introduction
that the public call we made at the beginning of
year to place 2,500 million preferred shares,
aimed at promoting the incorporation of small
investors as stockholders, was a total success.
This certainly reveals that our name has gained
a high level of trust within the Venezuelan society.
Data speak for themselves: at the first half of
2008 closing, Banesco got stronger and became
the second financial institution with the highest
equity within the local financial system _
Bs.F. 2,556 million_ which represents a Bs.F. 406
million increase with respect to 2007.
The public's preference enabled the exceptional
management of third-party resources
(Bs.F. 30,054 million and 14.7% of the market
share), customers' deposits (Bs.F. 26,155 million),
and total assets for Bs.F. 30,873 million. This
was the first time a financial institution reaches
such number. As to liabilities, the Institution
showed an increase of 46.5% in customers'
deposits over the last twelve months for a total
of Bs.F. 26,155 million in the first half of 2008
(first place within the system and 14.2% of share).
As we have stated it in several public interventions,
Banesco has maintained and developed its
orientation toward credit intermediation. We are
determined to continue acting as a crucial agent
where promoting the best economy development.
During this quarter, the loan portfolio increased
to Bs.F. 17,213 million, thus placing us as leaders
within the Venezuelan financial system (15.2%
of the market).
Including in this introduction every figure that
makes each Banesco employee proud would be
too extensive. I would like to emphasize the
impact that Banca Comunitaria Banesco (Banesco
Community Bank) has had. After two years of
successful management, the Institution has by
the first half of 2008 closing 17,185 microentrepreneurs who have reported improvements
in their quality of life, their family unit, and their
environment. Based on our studies, the impact
has benefited over 200 thousand people, of
which over 85 thousand have received all kinds
of micro-credits.
Our Financial Statement as of the first half of
2008 shows a net income of Bs.F. 338 million.
Needless to say, this figure reveals a dedicated
and disciplined management which quarter after
quarter thrives to maintain its high standards.
Once again, based on the results herein, it is
worth questioning what makes it possible. There
is one answer only: Banesco people; its employees
and clients, in addition to over 40 thousand new
stockholders, all focused on an effort to maintain
a productive activity which will continue
contributing to the improvement and the best
quality of life of the Venezuelan society.
Juan Carlos Escotet Rodríguez
Chairman of the Board of Directors
2
Financial Highlights
Growth
(Stated in Million VEF)
First Second
Half
Half
2007
2007
I Half 2008
I Half 2008
First
II Half 2007
I Half 2007
Half
2008 Absolute
% Absolute
%
Total Assets
Cash and Due from Banks
Security Investments
Credit Portfolio
20,347
4,775
2,882
11,432
27,700
6,638
3,338
16,207
30,873
7,188
4,699
17,213
3,173
550
1,362
1,006
Deposits from Clients
Deposits in Current Accounts
Savings Deposits
Time Deposits
Other Deposits
17,855
9,401
3,859
1,746
2,849
24,297
12,858
5,047
1,819
4,573
26,155
11,163
4,226
2,675
8,092
1,858 7.6%
-1,695 -13.2%
-821 -16.3%
856 47.0%
3,518 76.9%
Total Stockholders' Equity
1,736
2,150
2,556
Trust Assets
6,680
7,003
5,835
Debtor Accounts Due To Trust Assignments (FMH) 1,516
1,851
2,162
310
Financial Revenues
Financial Expenses
Gross Financial Margin
Financial Intermediation Margin
Transformation Expenses
Income Taxes
Net Income
1,052
316
736
993
607
30
296
1,365
455
910
1,196
693
47
398
1,912
788
1,124
1,333
896
43
338
548 40.1%
334 73.3%
214 23.5%
137 11.5%
202 29.2%
-4 -8.2%
-60 -15.1%
Ceded Investments
Accumulate Agriculture Portfolio
Official Institutions Deposits
Micro Loans
Commercial Loans
Credits to Consumer
Vehicles
Credit Cards
Mortgage Loans
5,803
1,227
1,787
504
6,202
2,549
220
2,329
1,046
2,494
1,582
2,766
766
8,730
3,780
448
3,332
1,380
1,737
2,342
3,090
788
7,392
5,261
517
4,745
1,501
-757 -30.3%
760 48.1%
324 11.7%
22 2.9%
-1,338 -15.3%
1,481 39.2%
68 15.2%
1,413 42.4%
121 8.8%
Ratios
Loan Portfolio Provisions/Non Accrual Loans
Non Accrual Loans/ Gross Loan Portfolio
Net Results / Average Assets
Net Results / Average Equity
Liquidity
* Operations in Venezuela
226.8%
0.7%
3.1%
36.1%
33.9%
173.3% 133.8%
1.2%
0.7%
2.4%
3.3%
39.1% 28.4%
32.0% 33.7%
406
11.5%
8.3%
40.8%
6.2%
18.9%
-1,168 -16.7%
16.8%
10,526
2,413
1,817
5,781
51.7%
50.5%
63.1%
50.6%
8,300 46.5%
1,762 18.7%
367
9.5%
929 53.2%
5,243 184.0%
820
47.2%
-845 -12.7%
645
42.6%
860 81.8%
473 149.8%
388 52.7%
341 34.3%
289 47.5%
13 42.7%
42 14.0%
-4,066
1,114
1,303
284
1,191
2,712
296
2,416
455
-70.1%
90.8%
73.0%
56.3%
19.2%
106.4%
134.7%
103.7%
43.5%
3
Stockholders Meeting Notice
BANESCO BANCO UNIVERSAL, C.A.
Stock Capital Bs.F. 641,499,327.00
By order of the Board of Directors and pursuant to articles 10, 12 and
27(2) of the Bylaws, the stockholders of Banesco Banco Universal, C.A.
are hereby called to a Regular Stockholders' Meeting to be held on Monday,
September 22, 2008, at 8:00 AM, in Auditorium Fernando Crespo Suñer,
Piso 3 (third floor) of Edificio Ciudad Banesco (Banesco headquarters),
located in Avenida Principal de Bello Monte, entre Calle Lincoln y Calle
Sorbona, of the city of Caracas, in order to discuss and resolve the following
matters:
FIRST: Upon revision of the Board of Directors' report and the
comptrollers' report, approval of the independent auditors' report on the
Financial Statements for the six-month period ended June 30, 2008.
SECOND: Dividends decree with charge to the first half of 2008 income.
THIRD: Modification of the par value of Banesco Banco Universal, C.A.
common shares and preferred shares from ten cent Bolívares Fuertes
(Bs.F. 10) to ten Bolívares Fuertes (Bs.F. 10.00).
FOURTH: Upon approval of the foregoing, modification of article 5 of
the Bylaws and unification thereof in one single text.
On behalf of the Board of Directors
JUAN CARLOS ESCOTET RODRÍGUEZ
Chairman
Note: Known all stockholders by these presents that the Board of Directors'
report, the comptrollers' report, the audited financial statements, as well
as other reports and proposals to be discussed in the Regular Stockholders'
Meeting, will be available to you fifteen (15) days prior said Meeting at
the offices located in Edificio “Ciudad Banesco”, Avenida Principal de
Bello Monte, entre Calle Lincoln y Calle Sorbona, Urbanización Bello
Monte of the city of Caracas, Piso 3, Consultoría Jurídica (Legal Vice
Presidency).
Caracas, August 28, 2008
RIF: J-07013380-5
Economy during the
First Half 2008
5
Economy during the
First Half 2008
Some of the findings published by Banco Central
de Venezuela (BCV) are as follows:
Gross Domestic Product (GDP)
The Gross Domestic Product (GDP) at constant
prices showed a 4.8% increase during 1Q 2008
with respect to last years' same period, evidencing
a slowdown in the Venezuelan economy rate of
growth. This is mainly due to a decrease in
consumption expenditure _associated to a strict
monetary policy which implied a moderate credit
growth_ and the reduction of gross fixed capital
formation (1.8%) related to lower levels of public
and private investment.
We observed a change in the product institutional
structure as a result of the migration of private oil
companies to the public sector (joint ventures)
and the nationalization of electric and
telecommunication companies. In this regard, the
value added of the public sector recorded a 22.2%
growth, while the private sector's decreased by 2.3%.
These results are mainly determined by the
institutional reclassification of nationalized companies.
Upon analyzing the behavior of the GDP per
activities, we observed that the oil activity increased
by 3.3%, thus braking the down-trend of the
previous six quarters. This performance is related
to the increase in crude oil production by the joint
ventures participating in the oil fields development,
which gather the old strategic Oil Belt associations
and the companies that operated under the risk
exploration system, which were also migrated to
the Government's new association system with
private companies.
As to non oil-related activities, we observed a 5.0%
increase. Among the most relevant:
communications (17.6%); community, social, and
personal services (8.4%); trade (5.7%); transport
services (5.0%); service producers of the General
Government (4.5%); building (2.6%), and
manufacturing (1.4%).
Employment
As of June 2008 closing, the unemployment rate
was 7.6% (960,515 unemployed), based on an
active population of 12,621,362 inhabitants. This
implies a .7-point decrease in comparison with
June 2007 (8.3%), as a result of the general economic
activity growth and the continuity of the social
programs generated by the National Government.
The informal economy maintains the down-trend
prevailing since December 2005. As of June 2008,
42.9% of the economically active population worked
in the informal sector after a .9-point decrease in
contrast to 2007.
The proportion of the economically active
population shows a sustained growth during the
first half of year as a result of seasonal factors
derived from the economic cycle and the increase
in the demand for workers by the public sector. In
fact, the public sector has been a determining source
of employment since 2005.
Balance of Payments
The 1Q balance of payments closed with a deficit
of US$ 3,849 million, 31.3% lower than in the same
period in 2007 (US$ 5,606 million), due to the
checking account surplus increase of US$ 3,259
million to US$ 10,003 million, exceeded by the
financial account deficit (US$ 12,907 million).
The highest checking account surplus was the result
of the increase in oil sales revenues, which generated
a 137% increase of the trade balance, that is,
US$ 11,105 million. Such a positive behavior entailed
a 20% increase in imports in contrast to the same
period in 2007, but at a slower rate with respect to
the last three quarters.
The financial account showed a quarterly deficit
increase (US$ 12,907 million) higher than in 1Q
2007 by US$ 4,666 million, as a result of the deficit
increase in other investment and direct investment
accounts.
The direct investment had a US$ 1,715 million
deficit mainly related to two facts: the increase of
the oil sector investment abroad, basically due to
commercial debts to the affiliates thereof, and the
reduction of foreign investment in the country,
basically due to the repatriation of earnings by
foreign-capital financial institutions, the decrease
of dividends payable to stockholders of private
sector companies, and payments by the Venezuelan
Government to foreign partners of the oil sector
for equity investment.
6
Oil
International Reserves
The flows in portfolio showed a moderate US$ 45
million surplus, caused by a significant decrease of
the Government's assets in marketable securities
in the National Development Fund (FONDEN)
and the National Treasury's investment portfolios;
and by the reduction of the public sector's liabilities
(maturity of sovereign bonds and repurchase of
debt securities of the oil sector).
The financial flows in the balance of payments
placed the country's net assets in a higher position
with respect to the rest of the world, thus reaching
US$ 99,757 million in March, which exceeds by
56.4% the balance corresponding to the same
period in 2007, with significant increases of the
external asset positions (21.2%) and reductions
lower than the country's foreign liabilities (4.5%).
Oil
As per the OPEC, the Venezuelan average crude
oil production during the first half of 2008 was
2,392 million b/d, after a reduction of 49,000 b/d
in comparison with the average production in 2007
(2,343 million b/d).
During the first half of year, the Venezuelan oil
basket showed an average price of US$/b 101.22,
which corresponds to an increase of US$ 36.48 in
contrast to 2007 average price (US$/b 64.74).
International Reserves
As of the first half of 2008 closing, the international
reserves amounted to US$ 34,335 million, of which
US$ 33,514 million correspond to the external
assets of the Central Bank of Venezuela (BCV)
and US$ 821 million to the Macro-Economic
Stabilization Fund (FEM), thus showing a US$ 49
million growth with respect to 2007.
CADIVI
As of the first six-month period closing, the currency
flow authorized by the Foreign Currency
Administration Commission (CADIVI) was
US$ 23,303 million, settling 93.6% after a growth
of 21.3% with respect to the currencies authorized
in the first half of 2007, and 11.4% with respect
to the settled currencies. The average of daily settled
currencies in the first half of 2008 was US$ 179
million, which represents a 12.6% growth in contrast
to the same period in 2007.
7
CADIVI
Money Market
The sectors with significant participations in the
authorized currencies during the first half of
year were the following: Imports 55.4%, Latin
American Integration Association (ALADI)
Agreement 23.4%, Credit Cards 9.8%, Foreign
Investment 4.1%, Airlines 2.1%, and Private
External Debt 1.2%.
Money Market
The money supply increase as of June 2008 closing
(Bs.F. 161,399 million) with respect to 2007 closing
was 5.3%, while the monetary base (Bs.F. 64,658
million) increased by .7%. The relative stability in
the monetary variables is related to the net income
of several elements, namely: the settlement of debt
instruments for US$ 4,000 million as a result of a
Government placement in April; increase in foreign
currency expenses as a result of a higher settlement
of foreign exchange by the BCV; a US$ 659 million
expenditure for the purchase of Electricidad de
Caracas (electric utility serving the city of Caracas
and surrounding areas); and placement of structured
notes in the financial system.
Interest Rate
The trend of the interest rates has been within the
bounds of regulatory provisions. In February and
March, the BCV issued the resolutions adopted in
interest rate matters, thus increasing the minimum
saving rate (from 10% to 13%) first, and then the
time deposit rate (from 11% to 14%). As to credit
cards, the maximum chargeable rate increased from
28% to 32%. In May, the minimum chargeable
rate for saving accounts and liquid asset funds was
15%, while the time deposit rate increased to 17%,
and the credit card rate to 33%.
As to the rates of absorption transactions, the 28day was established in 13% and the 56-day in 14%.
The rates for injection transactions were
established as follows: 7 days (22%), 14 days
(23%), and 28 days (24%).
The average interest rate of the main six banks
as of June closing was 22.38%, which remained
almost unchanged in contrast to 2007 closing
(+.7 points), while the 90-day fixed term deposit
was established in 17.8%, thus increasing 6.6
points.
Inflation
The pace of inflation accelerated during the first
half of year as a result of factors from the previous
period which caused a declining of the domestic
production process, such as price controls and
demand increases, increase of the parallel
exchange rate, shortage of supplies, among others.
The intensification of the above described
process, which caused a critical shortage of
supplies, led the Government to reconsider and
adjust the prices of certain controlled items.
Another factor to consider is the effect of the
30% increase in minimum salary.
The average inflation at the first half of year
closing was 15.1%, of which 7.5% corresponds
to the second quarter, that is, .4 points more
than the first quarter. 15.8%.
The Wholesale Price Index showed an average
variation of 15.8%, .7 points higher than the
Consumer Price Index, and broken down in
12.5% for national products and 9.2% for
imported products.
As to the inflation of the Consumer Price Index
in Caracas, the average rate for the first six-
8
Fiscal Situation
month period was 16.3%, with the highest variations in Health, Restaurants,
and Hotels (25.3%) and Food (22.1%).
Fiscal Situation
During 1Q 2008, the income of the Central Government increased by 33.7% in
contrast to 1Q 2007, thus reaching Bs.F. 33,682 million. This increase is related
to the expansion of the ordinary income, mainly associated to the oil price increase
and, to a lesser degree, to the growth of the national economy, as well as the
increase of the extraordinary income.
Between January and March 2008, the ordinary income increased to Bs.F. 27,870
million, exceeding by 23.4% the 1Q 2007 ordinary income due to the 79.9%
increase of oil royalties and the up-trend of the Venezuelan oil basket.
Also significant was the increase in income related to customs operation and
ordinary import in contrast to the same period in 2007, 43.5% and 28.1%,
respectively.
The value added tax revenues showed a slight increase of 3.6% in the first sixmonth period mostly because some food items were tax exempted. The reduction
of the tax base was mainly compensated by the general increase of final goods
consumption and, to a lesser degree, by higher tax rates applied to alcohol and
tobacco.
We observed a 123% increase in extraordinary income for a total of Bs.F. 5,811
million, of which 55.0% derived from the Financial Transactions Tax (ITF), while
44.5% corresponded to income from several transactions carried out by the
National Treasury.
Expenses increased by 9.7% in contrast to the same period in 2007. 92.3%
corresponded to operating expenses, and 7.7% was allocated for repayment of
the Central Government's domestic debt (6.1%) and redemption of treasury bills
(1.6%). The fiscal deficit amounted to Bs.F. 5,438 million, while the financial gap
was Bs.F. 2,415 million.
Financial
System
The financial environment was framed by a series of events that affected the
monetary aggregates:
• With the purpose of increasing savings and refraining consumption, the
BCV issued two resolutions on the interest rate policy, one in February
and the other in May, thus establishing cap and floor rates for lending
transactions or loans payable, including the rates for the BCV absorption
and injection transactions.
• Mandatory lending buckets: A new lending bucket was created for
manufacturing companies. The banks must increase loans for this sector
at least 10% of their total portfolio by December 2008; and 19% was
established as the maximum annual interest rate for the financing of these
activities.
• 17% was established as the maximum annual
rate for the tourism sector.
• The lending buckets directives are effective
until December 31, 2008. The bank must
allocate 21% of the credit portfolio to
agriculture, 10% to mortgage, 3% to microfinances, and 3% to tourism, in addition to
the above new manufacturing lending
bucket.
• At 1Q end, the Ministry of Finance through
the National Office of Treasury took the
awards of structured notes back in order to
reduce the surplus liquidity of the financial
system.
• In mid-April, a combined offer of
international sovereign bonds was issued.
The bonds are due on 2023 and 2028, and
are mainly for companies of the productive
sector, with a US$ 4,000 million placement
which was absorbed by the domestic market
on the first week of May.
• Financial Transactions Tax: elimination of
the ITF rate to legal transactions (1.5%),
which was scheduled for December 2008.
Financial System Results
Based on June 2008 report by the Superintendency
of Banks, the financial system closed the first half
of year with 59 institutions, of which 49 are of
private equity and 10 belong to the Government.
The Commercial and Universal Banking consist
of a 3,449 agency network which represents 96%
of the agencies of the financial system and 69,847
employees.
The evolution of the commercial and universal
banking during the first half of year may be
summarized as follows:
• Total assets were Bs.F. 238,381 million, that
is, a 13.1% increase with respect to
December 2007, and a 36.5% year-on-year
increase.
• The productive assets increased by 12.5%
during the period as a result of the 18.6%
increase in investment securities for a total
9
Financial System
of Bs.F. 54,770 million, and a 10.2% increase
in credit portfolio, equal to Bs.F. 113,007
million. The evolution of the asset broke
the financial system trend existing since
2006, where the productive assets growth
was focused on the expansion of the credit
portfolio.
• The above is evident in the intermediation
ratio, which at the first six-month period
was 61.2%, that is, .5 points lower than the
previous six-month period, while the
delinquency rate increased .5 points, that
is, 1.7% in June 2008.
• The asset growth was limited by the
availability of funds in an environment
framed by a rigorous monetary policy.
• As a result of the slowing down of the
national economy growth and the highest
interest rates established for the financial
system, the credit portfolio showed a slow
expansion during the six-month period
which varies as diverted. For example, trade
credits showed a 2.3% growth, while the
variation in credit card consumption was
21.7% against 40% recorded in the same
period in 2007. As to the credit loan, it
showed a 19.6% growth in the six-month
period, against the 36.8% growth in the
same period in 2007. The agricultural and
tourism portfolios (under the Government's
control) showed variations in the six-month
period of 23% and 23.9%, respectively,
which are lower by 7.8 and 26.2 points in
contrast to the first six-month period in 2007.
• Customers' deposits increased by 11.2%
during the six-month period due to the
investments ceded to balance and new
funds. Upon analyzing the evolution of
customers' deposits and ceded investments,
it is evident that the growth decreased by
7.5%.
• We observed a fund mixture restructuring,
since most of the growth is the result of an
increase of instruments that lead to a higher
financial cost, like time deposits, which
increased by 40.0% (Bs.F. 26,880 million)
in the six-month period.
• During the first half of year, deposits in
checking accounts increased 7.5% by June
for a total of Bs.F. 92,905 million. Thus,
Bs.F. 50,732 million correspond to noninterest checking accounts (+5.5%), and
the remainder (Bs.F. 42,173 million) to
interest checking accounts (+10.0%). As of
June 2008 closing, saving accounts balance
was Bs.F. 34,973 million, which corresponds
to a 2.5% decrease in contrast to December
2007.
• The restructuring of the liability and the
interest rate increase caused an increase of
.6 points (5.7%) in cost of funds with respect
to 2007 closing. This was off set by the
increase of the implied lending rate by 3.5
points, until reaching 17.4%, thus generating
a wider margin of 11.7% over productive
assets, which exceeds last end of year (9.9%).
• The progress was reduced to .5 points at a
margin over increased assets level, as it went
from 6.3% in December 2007 to 6.8% in
June 2008. The progress decrease at the
productive assets level is due to an increase
of non-productive assets, which is related
to the increase of deposits in the BCV, as
it requires higher legal reserve.
• The pressure caused by the inflation
generated an increase of .3 points in the
restructuring expenditure as proportion of
wider assets, which is equal to 5.0%.
• The return on the average assets of the
commercial and universal banking was 2.6%.
The return on liabilities closed the period
in 31.4%, given the lowest financial leverage,
taking into account the higher levels of
capitalization of the overall financial
institutions.
11
Banesco Banco Universal
At the closing of the first half of year, Banesco is still the country's
main financial institution, leading:
• Assets (Bs.F. 30,873 million): 13.0% of the market.
• Customers' Deposits + Ceded Investments (Bs.F. 27,892
million): 14.1% of the market.
• Customers' Deposits (Bs.F. 26,155 million): 14.2% of the
market.
• Credit Portfolio (Bs.F. 17,213 million): 15.2% of the market.
• Trade Credits (Bs.F. 7,392 million): 13.4% of the market.
• Micro-Entrepreneurs Loan (Bs.F. 788 million): 17.9% of the
market.
• Agricultural Credits (Bs.F. 2,342 million): 16.5% of the market.
During the active six-month period, Banesco increased by 11.5%,
holding the first position in the commercial and universal bank
ranking, with a 13.0% market share, that is, 1.3 points higher
than the one recorded in the same period in 2007.
The investment securities portfolio was the main boost for assets
as they increased by 40.8%, at the same time as the credit portfolio
increased by 6.2%.
The highest increase of investment securities has an impact on
the productive assets mixture, which in December 2007 was
82.9% in credit portfolio against 17.1% in securities, while at
June 2008 closing, this changed to 78.6% and 22.4%, respectively.
However, it is above the bank average (67.4% and 32.6%).
• Banesco holds the first place within the main recipients
of credit portfolio, such as Trading, Credit Cards, MicroEntrepreneurs, and Agriculture. However, as with the rest
of the banks, the conditions of the economic environment
affected the growth in these sectors during the first half
of year. Thus, trade credits decreased by 15.3% during
the half of year, while auto loans, mortgage loans, and
tourism loans recorded an increase of 15.2%, 8.7%, and
14.6%, respectively. On the other hand, credit cards and
agriculture showed variations of 42.4% and 48.0%,
respectively, which exceeds by 2.1 and 17.3 points the
variations recorded in the first half of 2007.
• Following the Government requirements, and with the purpose
of diversifying and strengthen the development of productive
activities, Banesco focused its efforts on managing the lending
buckets. Therefore, at the first half of year closing, microloans
amounted to Bs.F. 788 million, while agricultural credits
recorded Bs.F. 2,342 million in June 2008. The mortgage
loans amounted to Bs.F. 1,501 million, thus holding the
second place in the commercial and universal banking, which
is equal to 13.0% of the market share, while tourism loans
were Bs.F. 263 million. As to the manufacturing lending
bucket (launched this year) recorded Bs.F. 455 million and
the 2008 mandatory percentage is 10%.
• The excellent management performed to maintain the quality
of the portfolio, resulted in a delinquency rate of 1.2%, which
is lower than the commercial and universal banking average
(1.7%), and an intermediation ratio of 65.8%, thus exceeding
by 4.6 points the average of this segment.
• Customers' deposits experienced a variation of 7.6% between
the six-month periods, caused by the transfer of ceded
investments to balance through the rights and interests in
securities, since where considered as one, customers' deposits
and ceded investments increased 4.1% only.
• The first half of year closed with a more onerous fund mixture
upon decrease by 13.2% of checking account balances and
increase of time deposits. As of June 2008 closing, time
deposits, ceded investments, and rights and interests in
securities, which are the instruments that yield the highest
interest rates, represented 42.8% of deposited funds, while
in December 2007, they represented 30.6% only.
• Despite the decline of the asset-liability mixture, Banesco
managed to have a wider margin over increased assets, that
is, from 6.60% in December 2007 to 7.38% in June 2008.
However, the high levels of inflation during the period and
the low growth of increased assets caused an increase in
operating expenses as part of increased assets, which, in
addition to the regulations over commissions, reduced the
levels of return in comparison with the same period in 2007.
• During the first half of 2008, Banesco Banco Universal
recorded a net income of Bs.F. 338 million, which where
considered together with liabilities of Bs.F. 2,556 million,
resulted in an average return on assets of 2.4% and a return
on liabilities of 28.4%.
Banesco Areas
13
Human Capital
Employees Housing Program
“Tu Casa con Banesco”
In February, a page in the Intranet with questions
on housing was created in order to update
information about the housing conditions of
Banesco employees, as part of the program “Tu
Casa con Banesco” (Your Home with Banesco),
whereby the Institution proposes all employee to
have their own home.
In March, a group of employees were officially
exempted from the credit loans they had with the
Institution. The group was chosen by a drawing
held in December 2007.
In April, a campaign to promote the real estate
developments financed by Banesco in the interior
of the country was prepared together with the
Vice Presidency of Internal Communications, in
order to provide information on the housing offer
to employees working in the states of Portuguesa,
Zulia, Anzoátegui, Aragua, and Carabobo.
The housing offer was included in the Capital
Region in May, promoting 7 developments and 4
properties of the secondary market for Managers
and Vice Presidents.
A visit to Parque Coropo development, located in
Maracay, Aragua State, took place. Our employees
looked the work and were assessed by the team of
Human Capital and Credit.
In June, a Housing Fair took place in Ciudad
Banesco, where over 750 employees approached
the stands of guest construction companies to hear
their housing offer for the Capital Region.
They also visited the Vitrina de Ventas de Coyserca
development, a construction company with 4 real
estate developments.
During the first half of 2008, Banesco Organización
Financiera has granted its employees a total of 382
unsecured loans for Bs.F. 2,625,982.33. The goal
for this year is to grant 1,500 credits, considering
that 40% of the bank population owns their homes.
Model of Competences
80% of the competence profiles designed under
an organizational structure was approved through
the breakout sessions between the Executive VP
of Human Capital and the respective Executive
Vice Presidents and Vice Presidents.
The comprehensive program “Formación en
Consultoría para el Diagnóstico de Competencias”
(Consultancy Training for Competence Diagnosis)
was created for the Human Capital team, and it is
based on the use of tools supported in the model
of competences for activities of personnel
recruitment and development.
The training programs related to the model of
competences were designed and applied in order
to achieve the progressive closing of gaps identified
in several areas of the Bank.
In order to start implementing personal evaluation,
the competence self-diagnosis was applied to 385
executives through an automated tool (scorecards),
which allows each individual to visualize his/her
competence gaps.
The 2008 Performance Evaluation process was
applied, thus reinforcing the method where the
general population of our Institution is evaluated
as per goals achieved. A total of 11,065 employees
from Banesco and Todo Ticket were included in
the process.
14
Social Responsibility
Corporate Social Responsibility:
Vocation and Conviction
AVEC
In 2004, we undertook to support the Venezuelan Association for
Catholic Education (AVEC) in order to contribute to the financing of
several projects engaged in the prevention of drug consumption, as both
direct and indirect beneficiaries are at social risk due to their situation
of poverty and their location in areas where the traffic and use of these
substances is evident. Therefore, between 2004 and 2007, we have given
them 8.40 millions of Bolívares Fuertes under our Corporate Social
Responsibility Program.
This figure will increase to Bs.F. 10.40 million in 2009, since at 2007 end
we entered into an agreement with this association for the amount of
Bs.F. 3 million, of which Bs.F. 1 million was already delivered during
November and December 2007. In the first half of 2008, we gave them
Bs.F. 1 million, and in 2009, we will give the remainder.
The resources under the new agreement will benefit 23 AVEC schools.
Trina de Medina School
We gave Bs.F. 200,000 to “Unidad Educativa Colegio Trina de Medina,”
located in Valencia, Carabobo State, which is a school-member of AVEC,
one of our main Social Partners.
The school had infrastructure problems, for which they were unable to
guarantee education to their students, mainly needy and disadvantaged
children and adolescents from Barrio El Prado and the neighboring
areas. The upgrade works will be completed in 10 months and have a
total cost of Bs.F. 1.49 million.
Fesnojiv
We renewed the support agreement we entered into with Fundación
del Estado para el Sistema Nacional de las Orquestas Juveniles e
Infantiles de Venezuela (National System of Youth and Children's
Orchestras of Venezuela), one of our main Social Partners. This
year, in the enforcement of this agreement, we will contribute with
Bs.F. 3 million for the development of Proyecto Social Pedagógico
y Artístico de Fesnojiv (Pedagogical and Artistic Social Project),
which helps thousands of children and adolescents nationwide. The
first half of the current year, we gave them Bs.F. 750,000.
The first agreement entered into by and between our Institution and
the System of Orchestras in 2004 established the provision of
resources for Bs.F. 3 million. Under the new agreement, Banesco's
social investment in Fesnojiv will amount to Bs.F. 6 million. These
resources are aimed to acquire musical instruments for the different
headquarters and centers of the system, which receive over 200
thousand young people and children who find in music an opportunity
to progress professionally.
15
Banesco Voluntary Service
Asociación de Damas Salesianas
The Asociación Civil Damas Salesianas (a nonprofit association of "Salesian Ladies") hopes to
consolidate its Job Training Program through the
supply of equipment, betterments to the
infrastructure of the facilities, and support for the
payment of the center's facilitators. Banesco Banco
Universal joins this initiative with a contribution
of Bs.F. 295,525.
The program, which is developed by the training
in two Jobs, Administrative Assistant and
Accounting Analyst, is executed in the Metropolitan
District, and in 2007, 200 students benefited from
it. The association hopes maintaining the same
Lumber of participants this year.
Through the Job Training Program, the “Damas
Salesianas” Association contributes to the
improvement of the quality of life of the youth
with limited financial resources and helps them
integrate into the labor market.
Fe y Alegría
In 2007, we renewed the agreement we entered
into with Fe y Alegría (Faith and Happiness) for
Bs.F. 12.5 million, which will be provided within
5 years in order to constantly provide equipment
and extend the institutes of higher education that
this organization has in Maracaibo and
Barquisimeto.
In 2002, we created a Bs.F. 10 million trust, which
we provided within 5 years to Fe y Alegría in order
to extend and equip the Instituto Universitario
Jesús Obrero de Catia, and to build the Instituto
Universitario San Francisco in Maracaibo and the
Instituto Universitario Jesús Obrero in Barquisimeto.
Today, the three university institutes are fully
operating, thus giving more study possibilities to
over 4,500 Venezuelan young people. In the first
half of year, Banesco gave Bs.F. 4,605,931 for the
construction of the second building of the Instituto
San Francisco in Maracaibo.
Universidad de Los Andes
From May 31 to June 8, the authorities of
Universidad de Los Andes organized the 11th
International University Book Fair (FILU), dedicated
to the 450th anniversary of the city of Mérida, in
the “Mucumbarila” Convention Center. Many
important figures both in and out of the academic
field attended the event. FILU 2008 counted on
Banesco's sponsorship for Bs.F. 40,000.
As part of the fair, Carlos Oteyza, film director of
“El Reventón. Los inicios de la producción petrolera
en Venezuela (1883-1943),” showed this
documentary, which has been presented in other
local cities. Banesco also sponsored this film with
a contribution of Bs.F. 64,500.
UCAB
We gave Universidad Católica Andrés Bello
Bs.F. 53,000 aimed at supporting the creation of
the lecture “Cátedra Fundacional de Memoria del
Periodismo Venezolano Sofía Ímber.” It is a research
project for the digitalization of the journalistic
memory of Sofía Ímber and Carlos Rangel (two
of the most respected journalists of the country).
Fundana
The “Fiesta del Amor y la Amistad” (Love and
Friendship Party), held in February, in Fundana,
benefited over 80 resident children. In June, 56
voluntary employees of the Office of Real Estate,
Infrastructure, and Insurance, organized the theme
party “El Arte Asegurado” (The Guaranteed Art)
for these 90 children.
Fe y Alegría
In February started the Further Training Workshops
aimed at the student community of the Instituto
Universitario Jesús Obrero in Catia. Workshops
like Basic Power Point and El Rol del Docente
(Role of Teachers) were offered, thus benefiting
37 students.
The workshops Oratoria I (Oratory I), Rol del
Docente (Role of Teachers), 7 Hábitos de la Gente
Altamente Efectiva (7 Habits of Highly Efficient
People), Ética en el Trabajo (Ethics at Work),
Pintura en Madera (Wood Painting), and Técnicas
de Negociación (Negotiation Techniques) were
carried out in March; 82 people attended.
The workshops Oratoria I (Oratory I), Ética en el
Trabajo (Ethics at Work), Basic Excel, Prevención
16
contra la Legitimación de Capitales (Prevention
of Money Laundering), and Enfoque Basado en
los Sistemas de Gestión (Focus Based on
Management Systems) were carried out in April.
We entered into agreements with the directors of
the Instituto Universitario Jesús Obrero (IUJO),
Extensión Barquisimeto, in order to start the
Further Training Project, where Barquisimeto
employees carried out voluntary work as facilitators
in the learning process of students. The workshops
Oratoria II (Oratory II), Ética en el Trabajo (Ethics
at Work), and Pintura sobre Madera (Wood
Painting) were carried out in May.
As part of the project “Desarrollo de Competencias
Administrativas y Gerenciales” (Development of
Administrative and Managing Competences) aimed
at the personnel of the Instituto Radiofónico Fe
y Alegría - IRFA, the workshop Office Package
was offered to 25 people.
Venezuelan Red Cross
During the first half of year, the second stage of
the Panda Project “Formación en Prevención de
Desastres y Primeros Auxilios a niños con
Deficiencias Auditivas” (Training in Disaster
Prevention and First Aids to Hearing-Impaired
Children) was carried out and included prevention
workshops for 13 educational units of the Gran
Caracas.
Among the units and schools helped are: Unidad
Educativa Miriam de Ohep de Vélez, (45 assisted
children), Unidad Educativa Especial Ann Sullivan
(60 children), Unidad Educativa Especial Caracas
y Hellen Keller (50 children), Colegio Instituto
Estimulación de la Comunicación Oral - IECO,
and UE Juan Pablo Bonet, that assisted 200
children.
17
Banesco: The Safest Banking System
Campaigns
Be the Owner of the
Main National Bank
From March 24 to May 8, Banesco Banco Universal
made two issuances of Preferred Shares, in order
to strengthen its equity base by signing up new
partners. This favored the small investors that
counted on an investment instrument with a fixed
dividend of 19.5% during the first year.
The share value was Bs.F. 10 and the minimum
investment required was Bs.F. 100, recoverable in
three years.
The issuance of 2,500,000,000 shares was placed
in full, reaching record highs in Venezuela of over
40 thousand stockholders.
Banesco Interest-Bearing
Checking Account:
¡Nadie Tiene Nada Igual!
In order to have demand liabilities through the
opening of Checking Accounts, the Banesco
Interest-Bearing Checking Account Campaign was
launched.
The purpose of this communication was to place
the checking account as the best option to manage
money with the best interest, free ATM transactions,
and free checkbooks. Furthermore, customers may
enjoy instant awards upon paying with their Banesco
Debit Card in Banesco Points of Sale located in
commercial establishments.
Pay On Time and Travel
Around the World
In order to encourage natural persons having credits
with the Bank, the Promoción Premio al Pago
Puntual (Prompt Payment Award Promotion) was
launched for Credit Cards, Multicrédito 48 horas
(48-hour Multi-Credit), Microcredits, and Payroll
Credit.
This promotion, effective to August 31, invites
clients to make prompt payments in order to have
the opportunity to participate in the monthly
drawing of a trip package for two to 4 destinations
of your choice.
Closer to Our Customers
In March started the campaign "Banesco lo llevas
contigo" (Banesco Any Time, Anywhere), which
gives life to our logo as a universal sign that pulsate
with every project, every need, and every dream
of all our customers, wherever they might be.
This campaign is intended to bring our brand
closer to clients in their everyday life, and personal
and professional growth, while their count on
Banesco at all times and from anywhere.
Banesco: The Safest Banking System
To highlight the efforts and achievements in
systems and certifications related to the security
level of Banesco Electronic Channels, toward
increasing preference by the clients, the campaign
“Banca Electrónica Banesco la distancia más
corta entre usted y el sistema más seguro de la
Banca” (Banesco E-Bank - The shortest distance
between you and the safest Banking system) was
launched.
This campaign also highlighted information such
as: new 24-hour security systems; we are the only
McAfee SECURE Certified bank in the country,
for both its Internet Banking and its Web page.
The clients will receive text messages with
information on the transactions carried out in
their accounts; the security in Points of Sale and
ATMs has been reinforced; as well as the exercise
of a policy of constant improvement and
implementation of processes, which will offer
more security to our clients.
Expansion at Top Speed
Our aim is to offer the best service to our clients,
and one way to do it is by appropriately locating
our banking service points in all modalities.
As of the first half of 2008, we started doing
business in:
Distrito Capital
Guárico
Lara
Portuguesa
Multiplaza El Paraíso
Calabozo
C. Empresarial París
C.C. Llano Mall
18
Electronic Channels
Shopping Malls
This six-month period, the aim was to maintain
a significant brand presence in high-traffic areas
by extending our participation in 15 new
shopping malls with innovative locations that
generate a higher visual effect at a lower cost.
As of the first half of year we were present in 54
shopping malls (46% in Gran Caracas and 54% in
the east and west regions).
Banesco
is Present
Our brand, products, and services are always present
at the most important events of interest for our
clients.
Automotive Segment
First Expo Círculo Automotriz Automarket Caracas
2008, where we promoted our products CrediCarro
on the Internet and Credivehículo (auto loans), we
were awarded the "Banco de Mejor Atención al
Público” - Bank with the Best Customer Service).
We also offered an integral service with Banesco
Seguros (Banesco Insurance).
Energy Segment
XIX Exposición Latinoamericana de Petróleo (19th
Latin American Oil Exhibition) held in Maracaibo,
where we offered different product and service
options for this segment.
National Reference Events
Vuelta al Táchira (Táchira Tour), Procesión de la
Divina Pastora (Divina Pastora Procession), XI
Convención Nacional de la Vivienda y Hábitat (6th
National Convention on Housing and Habitat),
events where we presented an interesting and
diverse product and service offer.
Sports
XXV Triatlón Hebraica (Thriatlon)
Contra Reloj Bike Pro, carried out in Avenida Río
de Janeiro in Caracas, where we had brand presence
and ratified our interest in supporting sports.
ISO 9001:2000
Certificate - Service
Quality
Guarantee
As part of the commitment to maintain the excellent
quality we offer our clients, the Vice Presidency of
Marketing Intelligence certified the programs of
Audits of Service, Mystery Client, and Business
Clients, in order to guarantee the information and
follow up that we need to improve and support all
the areas of service.
Improvements in internal processes
• Enable quality assurance development and
implementation.
• Control processes and aim for continuous
improvement.
• Are mainly based in the client's opinion, needs,
and expectations, to increase the efficiency
and quality of the results or emerging products.
The ISO certificate is a guarantee that a company
designs, creates, and provides its services or products
following a management method in agreement
with the highest International standards.
Electronic
Channels
Banesco.com and BanescOnline received the
International Security Accreditation "Hacker Safe",
awarded by McAfee to the sites with the highest
levels of security against Internet attacks. Banesco
was the only accredited bank in Venezuela.
Effective immediately, McAfee will carry out daily
checks to our sites, based on better security practices,
in order to identify new enhancement opportunities
that will help us take timely and effective actions,
thus guaranteeing the security of our clients.
Electronic Channel in Figures
At the first half of 2008 closing, transactions
through electronic channels showed a relative
increase of 64.0% with respect to the previous
year _from 38.9 million to 63.9 million average
transactions per month.
19
Electronic Channels
The participation of electronic transactions
represented 86.9%, which is an improvement of
6.5 percentage points with respect to 2007.
million are managed by the call center agents, with
service levels over 89% and a participation of the
IVR robot of 74%.
BanescOnline
As to authorizations, the general TDC (Credit Card)
approval level for the first half of year (national
and international) was 83.40%.
June 2008 closed with 1.3 million affiliated clients,
that is, 244,292 clients joined the channel during
the period. This represents 23.24% increase in
comparison with December 2007. The base of
affiliated clients recorded an average of 30
transactions per month.
The average of monthly transactions carried out
through this channel was 38.4 million, which
represents a 104.3% increase with respect to 2007.
As to the volume managed in 2008, the monthly
average was Bs.F. 3.7 million _45.5% with respect
to 2007.
During the six-month period, this channel was
enhanced with new functionalities to increase the
security and efficiency levels thereof; among others:
implementation of the custom image security
mechanism “Diferidos II”, through which
transactions are verified by confronting the client's
particular behavior _last connection Message, and
Queries and Payments to Movistar.
Call Center (CAT)
As of the first half of 2008, the center received in
average 4 million calls per month, of which 1
Points of Sale, ATM, Self-Service
Banking and Check Book Issuing
Machines
Banesco milestones at June closing were, as follows:
• 46,536 points of sale and a monthly average
of 7.5 millions of transactions for a moderate
growth of 20.9% with respect to the first half
of the year 2007.
• 1,318 Automated Teller Machines, through
which a monthly average of over 7.8 millions
of transactions were carried out in 2008
_11.0% more than in the prior year. In addition,
we remain transaction leaders as acquirers of
Suiche 7B and Conexus networks.
• 316 self-service banking equipment and 282
check book issuing machines for a joint volume
of transactions of 2.7 million operations
during the first half of the year _a 110%
growth.
20
Virtual Banking
Virtual Banking
Internet Banking
• The Message Placement Application (ACM)
was implemented as the technology enabler
for communicating with internal/external
customers through text messages and e-mails
from different contact channels. Todo Ticket
(All Ticket) areas were also incorporated to
send messages relating to balance credit
notifications via SMS and SIR WEB for
sending messages and notification on profile
creation and changes in requirements' status
via e-mail. To date, approximately 25,000 and
50,000 messages have been sent via SMS and
e-mail, respectively. Also, ACM has been used
to support the phishing prevention campaign
during the Preferred Shares Issue by sending
165,924 e-mails. Messages sent through ACM
have allowed clearing conventional channels
and promoting the use of electronic channels.
• New functionalities have been incorporated
to the communication component (Parser
XML; the transaction integration component
with miseries/Visual Banker in XML format)
to allow the processing of simple transactions
with concurrences required by Banes co
Saguaros for massive policy consultations at
the collection offices. This will allow the same
Banesco Seguros (Banesco Insurance)
transaction to be simultaneously carried out
by more than one person.
Other Channels and Special Projects
The Banesco Preferred Shared internet service was
incorporated, which allowed Internet Banking
customers to subscribe 1,208 requests for securities,
while clearing branch offices. Also, the possibility
of performing request annulment and modification
processes was provided, in order to increase selfmanagement processes via Internet.
Special Services, Clearing House
As of this period, upon migration and stabilization
of the Check Processing Platform from VDPS
3.2.1 to AiDPS 4 under SQL, our work was focused
on solving the issues identified in the other
components of the Clearing House platform,
specifically the components for managing Electronic
Clearing House. After the passing to production
of the improvements and optimization identified,
this has managed to reduce platform log-in events
by more than 75% during the first half of the year,
thus representing a permanent and significant
progress in service stability.
Support and Maintenance
Actions to strengthen the Internet channel security
while contributing to Loss Prevention:
• Security Website that allows customers
obtaining updated information on Data
Security. Which allows or customers to obtain
updated information on Data Security.
• Implementation of improvements for
strengthening the security of BanescOnline
transfers.
• The transfer of Applications to SWF: Transfer
of 11 applications to the Accenture Delivery
Center in Argentina was accomplished by
lining up with the Bank's IT transformation
strategy. Joint operation with BanescOnline
was initiated. New Internet Banking
Functionalities, namely.
• CADIVI Allowance Consultation Services
via SMS
• Credit Card Limit Consultation Services
via SMS
• Credit Card Balance Consultation Services
via SMS
Payment Forms and Services
Cash Management Services
During the first half of the year, transactions and
amounts have increased by 18.2% and 63.2%,
respectively, when compared to the prior-year
period regarding Payroll Payment, Supplier Payment,
and Direct Billing through the Data Exchange
Platform (EDI).
Through joint operation by our executives and
Specialized Banking, 679 new clients have been
captured at June 2008 closing, and a client portfolio
review and purge to providing customized treatment
and better service standards has been provided.
At June 2008, the client portfolio accounted for
6,337 customers, 82.8% of which corresponds to
the Payroll service, 7.7% to Supplier Payment and
the remaining 9.5% to Direct Billing.
21
Specialty Segments
Collection Services
Collected amounts showed an increase of 67.1%
at closing at Bs.F. 1,641 million, when compared
to the same period in 2007 (Bs.F. 981 million).
Transactions did not fall behind, showing an increase
of 36.7% with respect to the June 2007 closing
_698,831 transactions.
During the first half of the year 2008, transaction
amounts went from Bs.F. 1,921 to Bs.F. 2,349 _a
22.3% increase.
New Developments
• Past-due Credit Installment Collection services
were incorporated upon payment receipt on
the Exchange Platform (EDI), which
improved collections and effective collection
percentages in a significant manner.
• A validation process establishing a minimum
fixed amount for payroll commission was
implemented upon EDI module recording.
In case of requesting the exemption of such
commission, the Commission Exemption
Authorization process should be followed in
accordance with the standards provided in
the respective manual. This will allow
significantly improving income receivable on
payroll commissions.
Debit
Card Issuing Business
• Banesco has consolidated its leadership in
Debit Card POS Sales with a market share
of 21.9% at May 2008 closing, overtaking
his closest competitor by 5.31 point, the most
remarkable difference during the year. In
addition, Banesco has grown 2.53 points
above the total debit card business market
with respect to that reported during the
previous month. Such leadership relies on
the service level strategies that encourage the
use of debit cards, such as keeping optimum
transaction approval levels at points of sales.
Credit
Card Issuing Business
• During the first half of the year, Banesco
has shown an increase of 77.84% in sales,
when compared to the prior year period, and
has remained a credit card sales leader in
Venezuela with a market share of 27.04%,
overtaking its closest competitor by 12.47
points. When compared to December 2007
closing, we have gained a market share increase
of 1.51 points, based on the applied business
strategies.
• In order to contribute to greater penetration
in the juridical sector, during the first half of
the year 2008, Banesco experienced the highest
increase in its financial market sales. The bestpositioned product was the TDC Empresarial
(Corporate Credit Card), which has grown
among large corporations and in small and
medium-size businesses.
• As part of the ongoing search for improving
service quality and offer comprehensive
customer service, Banesco has created a
Special Account Strategic Management for
purposes of providing legal customers with
credit card request processes through
employee payroll, while offering advantages
with respect to the regular requirements and
time for assessment and delivery. In the TDC
Jurídicas (Juridical CC) segment, two CC
Business Executives were incorporated to
support the entire sales network in the
placement of juridical products.
• To encourage timely payment among
customers, we launched the campaign “Pague
Puntual y Déle la Vuelta al Mundo con
Banesco,” (“Pay on Time and Travel Around
the World”) including the leading product in
the Venezuelan Market, _ Banesco Credit
Card and alternatives to maintain our
customers credit records.
Specialty Segments
Banesco Community Bank
During his second year of inception, Banca
Comunitaria has consolidated as the Banesco microfinancial initiative that meets the financial needs of
low-income communities. Designed under the
premise of a profitable social responsibility business,
Banca Comunitaria Banesco has managed to
contribute to the better life quality of a significant
number of people.
22
Specialty Segments
At June 30, 2008, 42,965 customers have opened a Cuenta Comunitaria
(Community Account), 18,469 and 5,416 Préstamos para Trabajar and
Préstamos Personales (Working and Personal Loans) have been granted,
respectively, and 26,172 customers have subscribed to Paso a Paso Ahorro
(Step-by-Step Savings) and 259 have acquired a Póliza de Vida Integral
(Comprehensive Life Policy).
Banca Comunitaria's most popular product is Préstamo Personal; the
other 18,469 microloans granted are in the amount of Bs.F. 97.7 million,
with a late interest rate of barely 2.02%. The Préstamo Personal segment
reached 5,416 people, for a total cleared amount of Bs.F. 2.3 million. It
should be noted that, as of May 2007, this offer has been suspended
because the product is undergoing a transformation.
Cuenta Comunitaria is one of the most valuable products among
customers to promote banking with simple proceedings and eliminating
minimum deposit amounts for account opening. During the first half of
the year, new accounts have reached an accumulated total of 42,965
accounts, with a total balance of Bs.F. 7.8 million. Likewise, 12,752
customers have subscribed to the Ahorro Paso a Paso Program, with an
accumulated account balance of Bs.F. 1.8 million.
The main purpose of Banca Comunitaria goes beyond the mere sale of
products. By enabling access to financial services to low-income
communities, we have implemented a change in paradigms, as evidenced
in the valuation of the benefits from access to financial services and in
the adoption of much more efficient saving mechanisms, such as Ahorro
Paso a Paso. Specifically, regarding access to financial services, 46% of
Préstamos para Trabajar correspond to microloans granted for the first
time, while 23% of such customers opened a bank account for the first
time in their lives.
As for the expansion of the customer service network, the number of
areas served increased with the inauguration of two new agencies: Puerto
Cabello and Higuerote, for a total of 12 Agencias Comunitarias
(Community Agencies) in addition to the existing ones in La Vega,
Antímano, San Martín, Guarenas, Petare, Valles del Tuy, La Isabelica
(Valencia), Catia, El Cementerio and Los Roques Island. We are now
serving 1,075 low-income neighborhoods in those areas and their
surrounding suburbs. Aligned with the purpose of offering a customized
service for loan request from micro-entrepreneurs and to allow our
customers to carry out their withdrawal deposit, and consultation
operations at their own communities, we have increased the number of
customer service channels through the establishing of new commercial
alliance partners. Currently, we have 180 customer service centers in lowincome communities with Banesco presence, distributed over 43 Barras
de Atención (Service Counters) operated by Banca Comunitaria personnel,
and 137 PosWebs at the commercial allies.
On the other hand, regarding the impact of microloans in life quality, a
survey conducted by renowned consulting firms shows that through the
granting of 18,469 microloans until 06.30.08, the monthly sales and
income of our customers have increased by an average 74% and 38%,
respectively. 87% of their children _over 37 thousand children are
attending elementary school. In addition, 39% of
our micro-entrepreneur customers have generated
one or more than one work position, and have
made two homestead renovations during the
previous year. 88% has gained access to fixed
telephony, 38% to cable television, 19% to internet
connection, and 23% to any private health service.
19% pays municipal taxes and 16% files income
tax returns, and 14% participates in sponsorships
and education activities at their communities.
To complement our customer service offer, from
January this year, Banca Comunitaria jointly with
the VP of External Communications and Social
Affairs and the VP of Human Capital, have worked
together in the design of a comprehensive program
to strengthening micro-entrepreneurs, which is
aimed at providing our customers with
administrative, managerial and technological tools
that allow optimizing their businesses' performance.
The program pilot is to be developed during the
second half of the year, at Agencia Comunitaria
San Martín, and we hope that all Agencias
Comunitarias will follow. Our credit product offer
entails a building and educational component
through which micro-entrepreneurs may optimize
quality life and business performance.
To develop this program, we have created alliances
with renowned social development organizations
that will be in charge of carrying out the different
project stages (Desarrollo Humano, Fortalecimiento
Empresarial, y Asistencia Técnica y Fortalecimiento
Tecnológico) (Human Development, Corporate
Strengthening and Technical Assistance and
Technological Enhancement) Alliance partners in
this pilot initiative include INVECAPI, UCAB
(Dpto. de Servicio Comunitario (Community
Service Department) of the School of Economics,
UCAB), Microsoft and Foco Sustentable. In
addition, Banesco Voluntary Service will also partake.
Through this project, we will foster loyalty from
our customers, who will then benefit from the
development of comprehensive educational
programs.
Also, during the first half of the year, we have
established strategic alliances to increase our scope
and operational range. Through mass consumption
retailers located in low-income communities, we
intend to attract new customers and foster the
development of shopkeeper and wholesalers at
such communities. In addition, we are working to
diversify transactions that might be carried out by
our customers at Barras de Atención.
The main purpose is to continue broadening and
expanding our service offer to achieve a massive
access to financial services and foster the
strengthening of Banca Comunitaria as an integral
proposal that meets the financial needs of lowincome population.
Energy Banking
The diversification scheme of Banca de Energía's
borrowing portfolio prevailed, reaching 32% in
the oil sector, 33% in the hydrocarbon and related
services sector, and 35% in the iron-steel/energy
sector. Concentrations were reduced and the
portfolio composition was diversified.
The portfolio growth prevailed, reaching a net
balance of Bs.F. 2,027 million at June closing, when
compared to Bs.F. 1,624 million at December 2007
closing. The energy client borrowing portfolio was
substantially increased regarding customers of the
energy sector, and including the service collection
process, wherein a growth over 78% with respect
to the prior year was observed, thus consolidating
our position as leading collector agent and
strengthening our performance, specifically in the
fertilizers' area.
The growth of the lending portfolio was that
expected, thus totaling Bs.F. 1,145 million in June.
In the energy sector, we have increased our presence
in the process of financing large hydro-electrical
projects through the main operating concerns.
We have continued the process of recruiting
specialized personnel for the different regions of
the country through the capture of the human
capital necessary to leverage our expansion.
Private Banking
Organizational Model
Between January and February, a new organizational
model entailing large modifications to the personnel
structure and functions was implemented. In
connection therewith, the position of Business
Manager was created, which will be responsible
for new business/client capture. Likewise, business
units known as Triadas de Negocios (Business
Triads) were created, which consist of one
Operating Assistant, one Account Executive and
24
Loans
one Business Manager, under a social approach
focused on customer service and results.
Capital Market
With the advice of the Vice-Presidency of Quality
and Processes, a survey was conducted to redefine
the functions and structure of the Capital Market
Management. As a result of this redesign, which
will be implemented during the second half of the
year 2008, we expect to provide better service and
advice to capital market customers.
Premium Segment
During the first half of the year 2008, Premium
Segment increased its participation in the agency
network regarding liabilities, from 18% in June
2007 to 20% in June 2008.
In line with the Organization strategy of improving
quality service of a greater number of customers,
nowadays, 210 advisors serve 47,361 customers at
national level. This customized service has helped
placing a greater number of products among
customers, reaching an index of 5.69. The credit
card holding percentage for this group of customers
is 76%, 96% of which issues invoices, 26% takes
advantage of its financing limit, and 33% utilizes
its CADIVI allowance.
Regarding customer migration to the use of
electronic channels through Banesco Online, this
share ranges from 40% in June 2007 to 49% in
June 2008, thus making the service channel even
much more profitable. Segment customers have
proactively participated in the purchase of Banesco
preferred chares by registering Bs.F. 28 million.
The commitment of the Premium Vice-Presidency
to the education of business advisors has prevailed
with outstanding results. 75% of the general
headcount has been promoted to higher positions,
which represents human capital savings through
decrease of the training needs of new recruitments.
Trust Funds
At June closing, the Trust Fund portfolio amounted
to Bs.F. 5,834 million, showing a an asset decrease
of Bs.F. 1,168 million during the first-half of the
year, which represents a reduction of 16.7% due
to a trust fund release for Bs.F. 1,641 million in
January, which has successfully complied with its
original purpose.
40% of the funds correspond to Collective Trusts
(Bs.F. 2,302 million), 26% to Administration Trust
(Bs.F. 1,527 million), 18% to Guarantee Trusts
(Bs.F. 1,071 million), and 12% to Investment Trusts
amounting to Bs.F. 708 million. Also, Combined
Trusts make up 4% of the total portfolio with
Bs.F. 227 million.
During the first half of 2008, 142 new trust funds
were created, while existing businesses reached a
total of 7,050 plans, 4,944 of which are
Administrative Trust Funds, 1,088 Collective Trust
Funds, 972 Investment Trust Funds, and 45
Guarantee Trust Funds.
For total financial assets, trust fund assets amounted
to Bs.F. 100,424 million at closing, thus representing
a Bs.F. 20,201 million increase during the first half
of the year. Banesco, as Trustee, was second in the
private bank listing with a share of 17.7%.
Regarding total trust market share, Banesco is
fourth with 6.1%.
Loans
Mortgage Loans
At the closing of 2008 first half, Banesco, the leader
in funding capture from the Mandatory Housing
Savings Fund (FAOV) counted on a loan portfolio
made up with FAOV resources of Bs.F. 2,141
million, and represented by 65,400 current loans.
During the first half of the year, 6,714 loans were
granted for a total amount of Bs.F. 372 million,
benefiting approximately 34 thousand people.
Likewise, 2,509 Direct Demand Subsidies were
granted amounting to Bs.F. 62,271 million.
Regarding the granting of Mortgage Loans through
own funding, during the first half of the year 2008,
Bs.F. 520 million were granted for the construction
of 4,783 homesteads locally.
We have kept the service pace from prior periods
by focusing on real estate developments in the
housing, hotel and shopping center market. We
are among the leading banks of the funding system
and have gained a high level of acceptance among
our customers, since our times of response and
remarkable elements regarding service quality are
the best of the local market, which makes of
Banesco a brand-recognition leader in the
Venezuelan financial system.
25
Credit
Micro-Entrepreneurs Loan
At June 30, 2008, the balance of Banesco
microloans amounted to Bs.F. 788 million, serving
an increasingly higher number of entrepreneurs,
which have found in us the strategic support
necessary to finance their activities. Based on the
above, Banesco has strongly positioned itself as
the top bank in the local ranking, being the financial
institution that invests the most in this economic
caption, by channeling at closing of the first half
of the year 2008, 4.8% of its portfolio, which is
beyond the legally established levels.
Tourism Loans
We have continued providing financial support to
all tourism projects presented by our customers,
thus stamping in all cases the economic priority
required, since it represents a significant factor for
the development of the national economy and has
high impact for being a work position and welfare
generator among the population. We strive to
become the best reference regarding tourism loans
of the financial system, for the versatility of our
products and services.
Manufacturing Loans
Funding granted to this sector has been channeled
through the different loan modalities available in
our Organization. For the June 2008 closing, we
have made all necessary human capital adjustments
and inductions to obtain a year-end manufacturing
portfolio of Bs.F. 1,641 million, which is the
minimum level required by Law for such type of
loans.
Auto Loan
At June closing, the auto portfolio amounts to
Bs.F. 516 million, thus reflecting a growth of 16%
(Bs.F. 68 million).
During the first half of the year, 3,465 loans in the
amount of Bs.F. 142 million were granted and
channeled through 4,948 requests filed through
the Credicarro internet tool.
26
Legal Risk
Strategic
Management
During the first half of the year 2008, with the
participation of all areas, a new management and
execution strategy was consolidated in the Bank's
project portfolio or Program aimed at increasing
effective execution levels through the improvement
of planning and proper effort dimensioning
processes prior to project execution. This initiative
seeks to capitalize the experience gained in the
Monetary Conversion Program that was successfully
carried out in 2007.
Also, during the first half of the year, we initiated
the process of communication and implementation
of the new governance model aimed at
strengthening and articulating all decision levels to
ensure a more effective business administration
focused on large strategy objectives.
By leveraging all aforementioned efforts, during
this period, we have continued to deploy the Bank
management and follow-up scheme within the
Balanced Scorecard framework, which provides
for an ideal mechanism to linking bank strategies
with operations.
Operational
Risk
Tool for Operational Risk Management (ORM)
aimed at enhancing the risk management process
in Banesco. The Tool for Operational Risk
Management was implemented during the first half
of 2008, for the main purpose of facilitating the
implementation of the Operational Risk
Management Model in the Bank through an
automated tool guaranteeing the completeness,
availability and reliability of information, thus
supporting a decision-making that allows for the
achievement of strategic goals and aggregated
value.
The Tool for Operational Risk Management is
based on the best risk management practices and
allows to:
• Analyze operational risk in a comprehensive
manner throughout the Bank.
• Manage in a centralized manner all the
information related to Operational Risk
Management and record loss events.
• Reduce the time for gathering and analysis of
the information in the stages of the
Operational Risk Management process.
• Monitor the implementation of management
strategies and behavior of risk indicators.
Legal Risk
The analysis of legal risks gains more importance
every day from the operational risk perspective
since banking business is exposed to legal risks
due to constant demands of regulators and the
number of agreements entered into with customers,
suppliers, employees and stockholders.
In compliance with strategic planning, during the
first half of 2008, the Risk Management Executive
Vice-presidency, through the Operational Risk
Vice-presidency developed certain activities aimed
at creating a risk culture with emphasis on legal
risks, as well as the identification, assessment and
mitigation of operational risks.
By means of these activities, the Bank enhances
the continuous improvement of its processes
through the preventive identification of operational
risks, which allows for enhancing the products and
services offered to customers.
International
The first phase of the new organizational structure
of the Foreign Banks Push Division Management
was completed in this half of the year, which is
aimed at supporting sales areas based on the
achievement of Bank's strategic goals.
The policies for opening letters of credits were
considered in order to meet market demands,
agreeing in a more dynamic and periodicallyadjusted scheme.
Business Solutions
Enhancement of the Business
Process Core Capacity
Effective February 2008 and in order to increase
the supply and direct service towards the provision
of innovative solutions for different Bank's business,
27
Business Solutions
Banesco counts on a new work structure and
scheme in its Quality and Process unit.
• The transformation of Quality and Process
into the new Business Process Unit is
encompassed within the transformation
initiative undertaken by the Bank in its
operation model.
• During the transformation process, a
competence analysis was performed on
personnel and new positions were created
offering specialization as a growth opportunity
in the Bank.
• We continue adding value by participating in
the project portfolio, where our team forms
active part in 93 cluster projects corresponding
to 2008 portfolio and 27 internal and external
solutions, maintaining the project's deviation
indicator below 5%.
• As a result from the transformation process
and the aforementioned achievements, Quality
and Process has the challenge of consolidating
Banesco's leadership in processes'
performance.
Administration
The Administration Vice-presidency, following the
guidelines of the Board of Directors in connection
with the improvement of the quality of our services
to external and internal customers, designed and
implemented a corporate mechanism for purchase
process namely “Procurement Committee”, the
purpose of which is to act as coordinated team
evaluating the design of operations for the
acquisition of supplies and services to assist in
purchase self-management areas to optimize their
value to the Bank. This process considers three
main analysis themes, such as legal, financial and
operational aspects of the bidder company, as well
as administrative aspects related to quality, service
and price of the product in addition to the
enhancement of strategic alliances and reciprocity
with our main suppliers in order to obtain an
aggregate value for the Bank.
The Procurement Committee is comprised of
r e p r e s e n t a t ive a r e a s, n a m e l y L e g a l ,
Administration, Finances, Trade Credit,
Operational Risk, Maintenance and Infrastructure
and Electronic Channels.
Operations
Custody Operations and Other
Services
Operations with Government Entities
Active participation of Tax Management staff
in all internal and external tests with SENIAT's
personnel, for the implementation of the national
tax collection scheme named Swiche 8184, which
would allow for making on-line transfers directly
to the Venezuelan Tax Administration (SENIAT),
upon receiving any type of tax paid at the bank
by a customer. This process is currently batched,
which implies a higher control risk, due to the
process to send the collection data for the day,
with a subsequent verification scheme. It is
estimated that pilot tests will start effective July
2008.
Custody
During the first half of 2008, Banesco Banco
U n i ve r s a l w a s l e a d e r i n M o n e t a r y
Redenomination regarding the exchange of old
notes by depositing at the Central Bank of
Venezuela Bs.F. 4,131,763,924, representing 87%
of the total amount collected by Banesco, and
20% of the money supply in circulation as of
December 31, 2007, which is a percentage higher
than the market share maintained in customers'
deposits.
Information Security
and
Business Continuity
Continuing with our commitment of enhancing
security of all critical channels, products and
processes, with a preventive approach, certain
initiatives have been incorporated in this first
half for the main purpose of safeguarding the
assets of the Bank and our customers in an
exhaustive and continuous manner.
Likewise, the basis and mechanisms have been
implemented to obtain a coordinated and centralized
prevention management allowing the Bank to
proactively, expedite and efficiently respond to
events that may represent any security risk in the
Bank's different channels and products guaranteeing
an effective response to our customers.
Additionally, we started a campaign to increase
public awareness on security matters addressed to
our customers through our security site at
Banesco.com and through advertising campaigns
ratifying our position as the “The safest Banking”.
In connection with Business Continuity, the projects
aligned with test, validation and consolidation
strategies for business operation processes were
started, guaranteeing continuity in case of specific
events.
Financial Systems and
Information Management
Stockholders
The Technology Area was based on the
development of an innovative solution to support
the process of Issue of Bank's Preferred Shares.
These technological tools allowed for the
incorporation of sales through Electronic Kiosks,
the WEB channel, call center and all our agencies
complying with all controls required for such
important goal.
Risk Management
The Credit Risk Area has a tool supporting the
integral assessment of credit risk developed by
using the latest technologies for data gathering
processes from our main systems, supporting
decision-making in the risk and credit area. Likewise,
the area has a new module to monitor Loss Events
in the Tool for Operational Risk Management,
which provides for a new technological influence
to manage operational risk in an optimal manner.
Finances
During the first half of 2008, the new version of
the SIAF application (Administration and Finances
Integrated System) was released under the SAP
platform, which would allow for supporting the
Finances area in controlling the budget execution.
Products and Services
In this first half, we supported, through technological
solutions, the introduction of My e-account for
individuals, sight deposits for customers to make
use of their money as desired with the best interest
rates, promotional rates for mass products (48h
Multi-credits, Extra-credits, Micro-credits, Payroll
Credit) and incorporation of Tax Collections from
Chacao Mayoralty.
Credits
We implemented a program to enhance our
technological tools supporting Automatic
Collections, Customers' Assessment through a
parameterized Scoring for mortgage loans and
CrediCarro (auto loans) via Internet, Customers
Rating integrating their productive assets and Web
Commercial Credit WorkFlow.
TDC Automation and
Collection
Management
During the six-month period just ended, different
applications and solutions supporting all the
requirements and works for redesign, improvement
and robustness of different systems were
implemented, optimizing processes through the
application of comprehensive automated tools,
reducing costs, meeting business goals and increasing
the portfolio. This provides more control and
security in the business process, enhancing the rules
and offering more satisfaction to our customers,
also complying with all regulations, both from the
corresponding government entities and the different
credit card franchises.
Balance
Sheets
As of June 30, 2008 and December 31, 2007
30
Balance Sheets
Banesco Banco Universal, C.A
(Stated in million VEF)
Operations in
Venezuela
ASSETS
CASH AND DUE FROM BANKS
Cash
Central Bank of Venezuela
Local Banks and Other Financial Institutions
Foreign Banks
Notes Receivable
Provision for Bank Accounts
SECURITY INVESTMENTS
Investments in Central Bank
Security investments for negotiation
Available for sale security investments
Security investments held until maturity
Limited Availability Investments
Other Security Investments
Provision for Security Investments
CREDIT PORTFOLIO
Outstanding Credits
Restructured Credits
Past Due Credits
Credits in Litigation
Provision for Credit Portfolio
INTEREST AND COMMISSIONS RECEIVABLE
Interest receivable from cash and equivalents
Interest receivable from security investments
Interest receivable from credit portfolio
Commissions Receivable
Provision for Interest Receivable and Other
INVESTMENTS IN SUBSIDIARY COMPANIES, AFFILIATES AND BRANCHES
Investments in subsidiary companies and affiliates
Investments in branches
Provision for investments in subsidiary companies, affiliates and branches
PROPERTY RECEIVED IN LIEU OF PAYMENT
PROPERTY IN USE
OTHER ASSETS
TOTAL ASSETS
Consolidated Operations in
with Foreign
Venezuela
Branches
Consolidated
with Foreign
Branches
Jun - 08
Jun - 08
Dec- 07
Dec- 07
7,188
567
5,649
64
78
830
0
4,699
1,143
0
494
2,908
153
1
0
17,213
17,255
25
196
6
-269
376
0
77
256
55
-11
166
5
161
0
1
764
466
30,873
7,243
567
5,649
64
133
830
0
4,849
1,143
0
557
2,996
153
1
0
17,238
17,281
25
196
6
-270
382
0
82
256
55
-11
5
5
0
0
1
764
466
30,949
6,638
485
5,684
54
19
397
0
3,338
550
0
576
2,075
136
1
0
16,207
16,266
27
114
3
-203
247
0
52
176
33
-14
161
5
156
0
2
664
445
27,700
6,686
485
5,684
54
67
397
0
3,519
550
0
641
2,191
136
1
0
16,243
16,302
27
114
3
-204
251
0
55
177
33
-14
5
5
0
0
2
664
445
27,814
31
Balance Sheets
(Stated in million VEF)
Operations in
Venezuela
LIABILITIES
DEPOSITS FROM CLIENTS
Deposits in Current Accounts
Non-Remunerated Checking Accounts
Remunerated Checking Accounts
Other Demand Liabilities
Savings Deposits
Time Deposits
Securities Issued by the Institution
Restricted Deposits from Clients
Right of Ownership and Participation on Security Investments
OBLIGATIONS WITH BCV
DEPOSITS FROM CLIENTS AND OBLIGATIONS WITH BANAP
OTHER FINANCING OBTAINED
Liabilities with local financial institutions up to one year
Liabilities with foreign financial institutions over one year
Liabilities for other financing over than one year
OTHER FINANCIAL OBLIGATIONS
INTEREST AND COMMISSIONS PAYABLE
Expenses payable due to deposits from clients
Expenses payable due to deposits from clients and liabilities with BANAP
Expenses payable due to other financing obtained
ACCRUALS AND OTHER LIABILITIES
TOTAL LIABILITIES
STOCKHOLDERS' EQUITY
CAPITAL STOCK
Capital Paid-in
Capital Reserves
Accumulated Income
Non-Realized Gain or (Loss) on Available for Sale Security Investments
Treasury Stock
TOTAL STOCKHOLDERS' EQUITY
TOYAL LIABILITIES AND STOCKHOLDERS´ EQUITY
Contingent Debtor Accounts
Trust Assets
Other Trusts Assignments
Debtor Accounts Due to Trust Assignments (FMH)
Other Debtor Accounts from FMH
Other Debtor Memorandum Accounts
Other Debtor Book Accounts
with Foreign
Venezuela
Branches
Consolidated
with Foreign
Branches
Jun - 08
Jun - 08
Dec- 07
Dec- 07
26,155
11,163
5,654
5,509
578
4,226
2,675
0
0
7,513
0
2
1,314
1,113
200
1
82
94
86
0
8
670
28,317
26,241
11,163
5,654
5,509
578
4,255
2,732
0
0
7,513
0
2
1,303
1,111
192
1
82
94
86
0
8
670
28,393
24,297
12,858
6,295
6,562
671
5,047
1,819
0
0
3,902
0
2
523
166
356
1
78
43
42
0
0
607
25,551
24,464
12,858
6,295
6,562
671
5,087
1,946
0
0
3,902
0
2
470
166
303
1
78
43
43
0
0
607
25,664
892
892
467
1,244
-11
-35
2,556
30,873
849
5,835
107
2,161
6
51,896
51
892
892
467
1,244
-11
-35
2,556
30,949
920
5,835
107
2,161
6
51,900
51
642
642
399
1,128
16
-35
2,150
27,700
1,089
7,003
103
1,851
6
39,878
49
642
642
399
1,128
16
-35
2,150
27,814
1,171
7,003
103
1,851
6
39,882
49
32
Statements of Earnings
Stated in million VEF
Operations in
Venezuela
FINANCIAL REVENUES
Revenues from Cash and Cash Equivalents
Revenues from Security Investments
Revenues from Credit Portfolio
Revenues from Other Accounts Receivable
Other Financial Revenues
FINANCIAL EXPENSES
Expenses Due to Deposits from Clients
Expenses Due to Deposits from Clients and Obligations with BANAP
Expenses Due to Other Financing Obtained
Expenses Due to Other Financial Obligations
Other Financial Expenses
GROSS FINANCIAL MARGIN
Income form Recovered Financial Assets
Expenses Due to Uncollectibility of Credits and Other Accounts Receivable
NET FINANCIAL MARGIN
Other Operating Income
Other Operating Expenses
FINANCIAL INTERMEDIATION MARGIN
TRANSFORMATION EXPENSES
Personnel Expenses
Administrative and General Expenses
Contributions to Deposit Guarantee and Bank Protection Fund
Contributions to Superintendency of Banks and Other Financial Institutions
GROSS OPERATING MARGIN
Income from Adjudicated Goods
Income from Sundry Accounts
Expenses Due to Realizable Property
Expenses Due to Dundry Accounts
NET OPERATING MARGIN
Extraordinary Income
Extraordinary Expenses
GROSS INCOME BEFORE TAXES
Income Taxes
NET INCOME
APPLICATION OF NET INCOME
Legal Reserve
Statutory Utilities
ACCUMULATED INCOME
LOSEP Contribution
OTHER ACCOUNTS
Third-Party Investments
Monthly Agriculture Credit Portfolio
Accumulated Agriculture Credit Portfolio
Public Sector Deposits
Micro-Credits
Credits to the Segment of Tourism in accordance to law in force
Mortgages according to the Special Law for the Protection of the Housing Loan Debtor
Financial Soundness Ratio (%)
with Foreign
Venezuela
Branches
Consolidated
with Foreign
Branches
Jun - 08
Jun - 08
Dec- 07
Dec- 07
1,912
1
124
1,759
28
0
788
752
0
30
4
2
1,124
22
120
1,026
408
100
1,333
896
401
426
52
16
438
2
14
1
64
389
0
9
381
43
338
1,921
1
132
1,759
28
0
790
754
0
29
4
2
1,132
22
120
1,034
400
101
1,333
896
401
426
52
16
437
2
15
1
64
389
0
9
381
43
338
1,365
2
91
1,243
28
0
455
438
0
4
0
13
910
18
76
852
458
115
1,196
693
321
315
41
16
502
9
4
1
65
450
0
5
445
47
398
1,376
3
100
1,244
28
2
457
440
0
4
0
13
919
18
76
861
453
118
1,196
694
321
315
41
16
502
9
4
1
65
450
0
5
445
47
398
68
1
266
3
68
1
266
3
40
1
353
4
40
1
353
4
1,737
330
2,342
3,090
788
263
1,150
8.7
2,494
192
1,582
2,766
766
271
1,050
8.0
33
Principal Financial Indicators
Principal Financial Indicators (%)
Jun-08
Jun-07
Equity + Operative Management / Total Assets
Non-Productive Assets / Equity + Operative Management
8.70
311.58
8.96
302.62
1.54
1.15
1.54
0.68
Personnel Expenses + Operative Expenses/ Average Productive Assets *
Personnel Expenses + Operative Expenses / Financial Income *
8.15
43.95
8.05
51.98
Net Results / Average Assets *
Net Results / Average Equity *
2.41
28.37
3.08
36.13
Availability / Customer Funds
Availability + Investment in Securities / Customer Funds
27.48
33.74
26.74
33.87
Loan Portfolio Provisions / Gross Loan Portfolio
Non Accrual Loans / Gross Loan Portfolio
* Annual Percentages
Corporate Governance
35
BANESCO BANCO UNIVERSAL, C.A. is a
financial institution incorporated in the Bolivarian
Republic of Venezuela and authorized to conduct
any kind of operations and businesses allowed
to universal banks in conformity with the General
Law of Banks and Other Financial Institutions.
Consequently, it is subject to control and
oversight by the Superintendency of Banks and
Other Financial Institutions.
Additionally, it is subject to the Capital Market
Law since its shares are registered with the
National Registry of Securities. The Bank is
domiciled in Caracas, and counts with agencies
in all the national territory and a Branch in
Panama City, Panama Republic.
As of June 30, 2008, article 5 of the Bank's
bylaws, approved at Extraordinary Stockholders'
Meeting held August 6, 2007, reads as follows:
… “ The capital stock of “BANESCO BANCO
UNIVERSAL, C.A.” amounts to SIX HUNDRED
AND FORTY-ONE THOUSAND FOUR
HUNDRED AND NINETY-NINE MILLION
THREE HUNDRED AND TWENTY-SEVEN
THOUSAND BOLIVARS (Bs. 641,499,327,000.00)
comprised of six thousand four hundred and fourteen
million nine hundred and ninety-three thousand two
hundred seventy (6,414,993,270) common non-bearable
shares at a par value of One hundred Bolivars (Bs.
100.00) each. Such capital stock has been fully registered
and paid in the percentage evidenced in the Stockholders'
Book. Preferred shares that prior compliance with legal
formalities might be issued by the Bank shall only be
placed through public offering and shall have the following
rights and characteristics: a) receive a preferred and
cumulative dividend with charge to income, the amount,
payment time, characteristics and other modalities of
which shall be determined by the Stockholders' Meeting
or Board of Directors , if appointed by the Meeting; b)
they shall only have vote right at Bank's Stockholders'
Meetings for the approval of the financial statements,
statutory amendments modifying their rights and for
appointing the Controllers and deputies and deciding on
their remuneration, and c)in case of Bank's liquidation,
they shall only have redemption right to the extent of
their nominal value plus dividends accumulated to the
date of the liquidation”.
However, on March 31, 2008, a Regular
Stockholders' Meeting was held whereby it was
decreed a dividend in common shares for the
amount of Bs.F. 158,500,673, to increase the capital
stock to the amount of Bs.F. 800,000,000.00
comprised of 8,000,000,000 common shares at a
par value of Bs.F. 10 each.
Subsequently, on April 14 and May 15, 2008,
Banesco Banco Universal, C.A. issued, through
public offering, 2,500,000,000 preferred shares,
as approved at the Extraordinary Stockholders'
Meeting on August 6, 2007. This procedure was
authorized by the Superintendency of Banks
and Other Financial Institutions and the
Venezuelan Securities and Exchang e
Commissions.
By virtue thereof, Banesco Banco Universal, C.A
asked the Superintendency of Banks and Other
Financial Institutions: (i) Authorization for
distributing the share dividend declared in the
aforementioned Stockholders' Meeting held
March 31, 2008; and (ii) Amend Article 5
regarding capital stock, which after the
aforementioned authorization, shall read as
follows:
“The capital stock of BANESCO BANCO
UNIVERSAL, C.A. amounts to one thousand and fifty
million Bolívares Fuertes (Bs.F. 1,050,000,000.00)
comprised of eight thousand million (8,000,000,000)
common non-bearable shares at a par value of ten cents
of Bolívares Fuertes (Bs.F. 10) each and two thousand
five hundred million (2,500,000,000) preferred nonbearable shares at a par value of ten cents of Bolívares
Fuertes (Bs.F. 10) each. Such capital stock has been
fully registered and paid in the percentage evidenced in
the Stockholders' Book. Preferred shares shall be issued
for an amount up to five hundred million Bolívares
Fuertes (Bs.F. 500,000,000) that prior compliance with
legal formalities might be issued by the Bank shall only
be placed through public offering and shall have the
following rights and characteristics: a) receive a preferred
and cumulative dividend with charge to income, the
amount, payment time, characteristics and other modalities
of which shall be determined by the Stockholders' Meeting
or Board of Directors , if appointed by the Meeting; b)
they shall only have vote right at Bank's Stockholders'
Meetings for the approval of the financial statements,
statutory amendments modifying their rights and for
appointing the Controllers and deputies and deciding on
their remuneration, and c)in case of Bank's liquidation,
they shall only have redemption right to the extent of
their nominal value plus dividends accumulated to the
date of the liquidation.”
36
BANESCO BANCO UNIVERSAL, C.A.
maintains a governance structure comprised of
the Stockholders' Meeting, Board of Directors,
Chair man of the Board of Directors,
Compliance Officer for Prevention of Money
Laundering, Internal Comptroller, as well as
Credit, Risk and Audit Committees. The Audit
Committee was created as established by
Recommendations of Corporate Governance
issued by the Venezuelan Securities and Exchange
Commissions through resolution number 19-12005, dated February 2, 2005 published in Official
Gazette of the Bolivarian Republic of Venezuela
Nº 38129 dated Febr uar y 17, 2005.
Stockholders' Meetings
It represents the universality of the stockholders
and has the company's supreme management
direction. Its acts and resolutions bind the
company and its stockholders. The Meeting is
empowered to appoint the members of the
Board of Directors, controllers and deputies,
advisors with right to attend and speak in the
Board of Director's meetings, discuss, approve
or modify the financial statements presented
based on the Comptroller's report, decide on
dividends decree and their form of payment, in
conformity with the law and bylaws, as well as
deciding on any other issue for which it was
summoned.
Board of Directors
The Board of Directors of Banesco Banco
Universal, C.A. is comprised of qualified people
with broad experience in different areas of the
banking business, of acknowledged solvency
and sound reputation as a guarantee of the good
performance of their duties. The main role of
the Board is the management and general
administration of the businesses and operations
carried out by the Bank, including corporate
social responsibility policies. The performance
of the Board of Directors is vital to define and
strategically manage the Bank, thus equally
directing business policies. Furthermore, the
Board controls the performance of operating
and functional areas of the Bank; it evaluates
and compares business projections, as well as
the results from previous years with the results
of each year. Based on the agreement reached
at the Regular Stockholders' Meeting held on
March 30, 2007, the Board of Directors went
from being comprised of no less than nine
members and no more than thirteen members
and it is currently comprised of nine Directors.
Likewise, it is important to highlight that, in
order to guarantee the proper performance of
the corporate policies, the Bank counts on the
following committees:
• Audit Committee: The duty of the
committee consists in knowing the financial
statements to be considered by the Board
of Directors and approved by the
Stockholders' Meeting in order to verify
that they comprise all the information
required and show, completely and
accurately, with no reserves or omissions,
the financial situation of the Bank. Likewise,
the Audit Committee assists the Board of
Directors with the implementation of
measures aimed at preserving the accuracy
of the financial information of the Bank
and collaborates with the supervision and
follow-up of the Bank's internal and external
audit. Among other issues, it recommends
the Board of Directors to appoint an
adequate firm of Independent Auditors; it
reviews and approves the scope of the
annual audit and the fees to be paid to such
firm, as well as its independence. Together
with the Board of Directors and the
Independent Auditors, the Committee
reviews all significant topics regarding
litigations, contingencies, claims and
valuations and it also points out the
recommendations deemed necessary in the
Management Letter. An Independent
Director participates in such Committee.
• Risk Committee: This Committee is
mainly engaged in fixing risk limits for each
of the activities carried out by the Bank in
order to achieve the performance of a
healthy comprehensive management of
operational, market, legal and business risks,
among others, as provided by the internal
legislation and international best practices.
Furthermore, the Risk Committee acts as
the advisor of both the Board of Directors
and the diverse Credit Committees in the
decision making process and it sets the
guidelines and policies to be followed in
order to preserve the established risk profile.
37
• Credit Committee: The Board of Directors, reserving the execution of this right, has decided
to delegate the right to grant credits to certain committees, establishing the amounts and all the
terms and conditions. Thus, in order to comply with the diverse autonomies and the delegation
of rights, the Executive Credit Committee, the Metropolitan Credit Committees, the Regional
Credit Committees and the individual autonomies were created.
Within the boundaries of their rights, these autonomies are in charge of the consideration and approval
of the various credit requests and it also informs the Board of Directors about the results of their
transactions. Likewise, there must be a compliance with the different risk policies that have already
been established.
The Chairman of the Board of Directors is subordinated to the Stockholders' Meeting and the Board
of Directors and he presides over their deliberations. Furthermore, he represents the institution and,
on its behalf, he grants contracts, agreements, settlements and, in general, all kinds of documents of
any nature. To summarize, the Chairman of the Board of Directors performs all those transactions
demanded by the Board. The Chairman and the Board of Directors represent the supreme performance
of the activities carried out by the Bank before any public or private entity.
Secretary
The Secretary of the Board is an attorney with broad experience in the banking industry and, very
specially, at the service of the Institution. He is in charge of the Board Secretary Management, which
must keep an organized record of the minutes of the sessions, as well as cooperate with the collection,
preparation and record of the corporate information required by the Board, the stockholders and the
regulating entities, among others. Additionally, the Secretary is in charge of keeping the order of
business of the meetings, as well as gathering the requirements regarding issues to be solved in such
meetings. Acting in his capacity of secretary, knowing the laws and counting on his financial experience,
he is entitled to be present and to intervene during the Board's sessions, which strongly supports,
from the legal point of view, the proposals being discussed in the meetings and the decisions made.
Internal Controller
He is in charge of the internal coordination of the analysis of the diverse operations of the Bank
and, together with the Audit Committee, he informs the Board of Directors about the results of the
various audits performed in order to improve the procedures and mitigate any possible deficiencies.
Compliance Officer
Banesco counts on a Compliance Officer in charge of the supervision and control of the Bank's
Prevention and Control of Money Laundering Unit. Such Officer is also the Chairman of the Bank's
Prevention and Control of Money Laundering Committee and informs the Board of Directors about
the results of its activities and the investment of the corresponding resources in the training and
education of Banesco's personnel regarding this issue. He is entitled to participate in the Risk Committee
and he immediately reports to the Bank's Chairman.
38
Banesco
Banco Universal, C.A.
• Equality: Strict respect to the equality right of
treatment with stockholders, workers and
suppliers, as well as any other person related
to the Bank.
• Respect towards the economic and political
rights of the stockholders.
Vicepresident of the Board of Directors
• Transparency, communication and
information: Generate reliance and credibility
in the market through the accurate disclosure
of all the information necessary for the
complete knowledge of the company.
Juan Carlos Escotet Rodríguez
Luis Xavier Luján Puigbó
Directors
María Josefina Fernández Maroño
Nelson Becerra Méndez
Gonzalo Clemente Rincón
Fernando Crespo Suñer
Salvador Cores González
Miguel Ángel Marcano Cartea
Carlos Acosta López
Statutory Auditors
Main Auditors:
Gordy Palmero Luján
Igor Williams de Castro
Substitute Auditors:
Berta Maita Rodríguez
Mariela Alcalá
Secretary
Marco Tulio Ortega Vargas
Judicial Representative
Marco Tulio Ortega Vargas
Report on the Extent of Compliance
with the Principles for the Good
Corporate Governance as of July, 2008
We reiterate that, for Banesco Banco Universal,
C.A., the compliance with the corporate governance
principles represents the performance of our
activities in accordance with the following standards:
• Efficiency: Aimed at generating the maximum
value using the minimum of the available
resources.
Therefore, in BANESCO BANCO UNIVERSAL,
C.A., we follow the principle “one share, one vote”.
Thus, we recognize the proportionality that must
exist between the equity interest percentage and
the corresponding equity right in the structuring
of the Bank's will, always through the properly
informed exercise of the stockholders' political
rights. In view of the foregoing, BANESCO
BANCO UNIVERSAL, C.A. relies on a
Stockholders' Unit in order to satisfy the needs of
the investors. Such Unit is in charge of making the
corporate information flow between the Bank's
managers and the stockholders, in a timely, complete
and accurate manner. It also constitutes a channel
for the investor to express any possible inquiry on
their investment, to gather corporate information
of their interest and to receive the reports to be
considered at the Stockholders' Meeting. The
Stockholders' Unit is assigned to the Bank's Legal
Consultancy.
Within the framework of the performance of the
principles for the good corporate governance, the
Board of Directors of BANESCO BANCO
UNIVERSAL, C.A. has taken the necessary
measures to maintain the proper transparency and
reliance standards to contribute with the greater
efficiency and reliance in the Venezuelan securities
market. In this regard, there is also an Independent
Director, qualified in accordance with the provisions
established by the Venezuelan Securities and
Exchange Commissions. Thus, the Audit
Committee counts on the presence of such
Independent Director and holds periodic meetings,
at least quarterly, in order to comply with the
provisions of the Performance Regulation.
First Half 2008
Accumulated
1998-June 2008
12,641,486
84,560,062
Fe y Alegría Foundation
Venezuelan Network of Youths and Children´s Orchestras Venezuelan
Venezuelan Association for the Catholic Education (AVEC)
Universities and University Institutes
Banesco Life-long Scholarships
Educational Institutes and Organizations
Venezuelan Foundation against Child Paralysis
Venezuelan Red Cross
Health Institutes and Organizations
FUNDANA Foundation
Don Bosco Housing Program
Association of Salesian Ladies
Attendance to the childhood and people with special necessities
Donation of Christmas Toys to the Community
Editorial Projects
Donation of Computer Equipment
Other Contributions
Solidarity (Capital and Regional)
Words for Venezuela
Investments in works in Colinas de Bello Monte
Church Social Work
Governorships, Governments and Other Organisms of the State
4,605,929
750,000
1,421,456
104,000
9,050
124,039
6,000
61,263
295,525
236,761
55,916
75,808
3,725
100,000
288,933
81,418
155,000
18,051,279
4,092,969
3,709,716
4,578,676
547,387
744,206
493,919
341,262
641,000
1,144,114
530,159
829,441
1,568,716
2,316,590
3,439,040
401,310
5,521,798
1,792,017
3,307,401
1,771,335
883,129
822,947
Social Benefits Noncontractual for Banesco Employees
4,256,094
26,702,622
Contribution Corporative Voluntary Service
10,569
115,703
Application of Article 96 of the LOCTISEP
288,887
17,755,838
Venezuelan Association for the Catholic Education (AVEC)
Children´s Museum
FUNDANA Foundation
Alliance for a Venezuela without Drugs
ABC Prodein (Santamaría City Petare -CISAMA)
Educational Foundation Canaima Schools
Education, Antidrug Campaigns and Sports
288,887
4,434,352
300,000
110,000
100,000
276,000
571,950
508,217
11,455,319
12,930,373
102,315,900
Fe y Alegría Foundation
5,519,058
407,175
5,519,058
407,175
TOTAL CONTRACTED COMMITMENTS
5,926,233
5,926,233
GENERAL TOTAL SOCIAL INVESTMENT
AND CONTRACTED COMMITMENTS
18,856,606
108,242,134
SOCIAL INVESTMENT
APPLICATION OF RESOURCES
THIRD PARTIES AND BANESCO
TOTAL SOCIAL INVESTMENT
With this Social Balance Sheet, we intend to demonstrate our
customers that Banesco plans to transcend the barriers of
philanthropy or welfarism. Together with our Social Partners,
workers, providers, clients and our more than 40 thousand
stockholders, we will continue to build a response that
contributes to the formation of a commitment culture with
the country from the private industry. This community
comprised of more than 100 thousand citizens, dreams about
offering opportunities of inclusion to highlight the entrepreneur
spirit of the Venezuelan people.
A continuous effort is required; therefore, we establish
partnerships with our Social Partners in order to guarantee
the medium and long-term financing. Non-profit organizations
have developed, though successful experiences, effective tools
to achieve goals that Banesco is honored to support. Among
such organizations are: Fe y Alegría, Asociación Civil Red de
Casas Don Bosco, Fundación de Amigos del Niño que Amerita
Protección, Universidad Católica Andrés Bello, Asociación de
Damas Salesianas, Museo de los Niños, Cruz Roja Venezolana,
Fundación Venezolana Contra la Parálisis Infantil, Sociedad
Anticancerosa de Venezuela, Asociación Venezolana de
Educación Católica, Asociación Civil Instituto Apoye,
Fundación del Estado para el Sistema Nacional de Orquestas
Juveniles e Infantiles de Venezuela, Asociación Civil Venezuela
Sin Límites, Asociación Civil Siempre Amigos and Fundación
Científica Los Roques.
Subscribing international standards that have been quickly
developing over the last years, we are in the process of applying
more advanced rules and evaluation methods, that will allow
us to be in constant evolution in the accounting. The
transparency and certification of external auditors bring us
closer to quality.
Furthermore, we continue to be committed to offer our
personnel non-contractual benefits that go beyond the
provisions of the current legislation because we understand
that the Social Responsibility starts at home.
DIRECTORS:
Juan Carlos Escotet
Luis Xavier Luján
Miguel Ángel Marcano
María Josefina Fernández
Nelson Becerra Méndez
Gonzalo Clemente Rincón
Fernando Crespo Suñer
Salvador Cores González
Carlos Acosta López
CONTRACTED COMMITMENTS
Stated in VEF
At least up to December 31, 2008 it will stay the circulation of both families of currencies (Bs. and Bs.F.) www.reconversionbcv.org.ve
43
International Area
International Banking Products
International Treasury
International Checking Account Plan
Olga Mifsut • Vice President
Telf. (58212) 501.84.14. • e-mail: olga_mifsut@banesco.com
Commercial Checking Account Plan
Rafael Eduardo Padrón • Correspondent Banking, Division Manager
Telf. (58212) 501.99.43. • e-mail: rafael_padron@banesco.com
Personal Checking Account Plan
Rosa Mariela Padrino • Internacional Treasury Manager
Telf. (58212) 501.91.08. • e-mail: rosa_padrino@banesco.com
Non-Active Commercial Account
Active Account
International Savings Account Plan
• All accounts bear interest on daily balances.
• Deposit Certificates.
• Free Life Insurance.
• Fund transfers to other banks in other countries.
• Traveler Checks.
• And many other services.
Letters of Credit for Imports
anywhere in the world.
Confirmation of Letters of Credit for Exports.
Money Orders anywhere in the world.
International Financing Operations.
Documentary Collections.
International Area
Edgar Piñero • Vice President
Telf. (58212) 501.99.84. • e-mail: edgar_pinero@banesco.com
José Rafael León • International Bussines, Division Manager
Telf. (58212) 501.98.39. • e-mail: jose_leon@banesco.com
Jose Figuera • Foreign Trade, Division Manager
Telf. (58212) 501.79.18. • e-mail: jose_figuera@banesco.com
International Offices
Affiliated Banks
Banesco S.A., Panamá (former Banesco
Internacional Bank Inc.)
Banesco International Bank Corp., Puerto Rico
Branches
Banesco Banco Universal C.A., Panamá Branch
Representative Office
Banesco Banco Universal C.A., Bogotá, Colombia
International Mailing Address
Banesco Banco Universal C.A.
8424 NW, 56 Street, Suite CCS00283,
Miami, Florida 33166, U.S.A.
Main Offices
Ciudad Banesco, Avenida Principal de Colinas de Bello Monte,
entre calles Sorbona y Lincoln, Municipio Baruta.
Caracas - Venezuela
Telephone Banking: 0500BANCO24 - 0500 226.26.24
Master Phone: (58212) - 501.71.11
www.banesco.com
44
Main Correspondent Banks
ARGENTINA • Banco de la Provincia de Buenos
Aires, Banco de la Nación Argentina, Banco Supervielle,
Banco Credicoop, Grupo Macro, Banco Patagonia,
Deutsche Bank, HSBC Bank.
HONG KONG • Standard Chartered Bank, Deutsche
Bank A.G., Citibank N.A., HVB Ag., Commerzbank
A.G.
AUSTRIA • Bank Austria Creditanstalt A.G., RZB A.G.
INDIA • Standard Chartered Bank, Deutsche Bank,
HSBC Bank.
BELGIUM • Dexia Bank, CIB Fortis Bank.
ISRAEL • Bank Leumi, Bank Hapoalim B.M., Israel
Discount Bank
BOLIVIA • Banco Económico, Banco Do Brasil, Banco
de la Nación Argentina.
BRASIL • Banco Bradesco, BICBANCO, Banco Do
Brasil, Banco Itau Unibanco Holding, HSBC Bank,
Banco ABC Brasil, Banco Safra, Banco Santander,
Deutsche Bank.
CANADA • Toronto Dominion Bank.
CHILE o Banco Estado, Banco Santander, Bci Banco
de Crédito e Inversiones, Banco Do Brasil, Banco de
Chile
CHINA • Standard Chartered Bank, HSBC Bank,
Deutsche Bank A.G., Bank of China, The Industrial
and Commercial Bank of China.
COLOMBIA • Banco de Bogotá, Bancolombia,
Bancoldex, Banco de Occidente.
COSTA RICA • Banco Nacional de Costa Rica, Banco
de Costa Rica, HSBC Bank, Banco Cuscatlán, Banco
Improsa.
ITALY • Banca Nazionale del Lavoro, Unicredit Group,
Intesa San Paolo S.P.A.
JAPAN • The Bank of Tokyo and Mitsubischi Bank,
Standard Chartered Bank, Citibank N.A., HVB Ag.,
Commerzbank Ag., Deutsche Bank.
KOREA • Standard Chartered Bank, Citibank N.A.,
Deutsche Bank, Commerzbank A.G.
MALAYSIA • Bumiputra Commerce Bank Berhad,
Standard Chartered Bank., HSBC Bank
MALTA • FimBank
MEXICO • Banamex, S.A., HSBC Bank, Banco
Santander, Banco del Bajío, Banco Regional, Banorte.
NICARAGUA • Banpro, Bancentro.
NORWAY • Nordea Bank.
DENMARK • Danske Bank.
PANAMA • BLADEX, HSBC Bank, Multibank.,
Credicoorp Bank.
DOMINICAN REPUBLIC • Banco de Reservas,
Banco BHD, Banco Popular.
PARAGUAY • Banco Do Brasil, Banco de la Nación
Argentina.
ECUADOR • Banco del Pichincha, Banco del Pacífico,
Produbanco, Banco de Guayaquil.
PERU • Banco de Crédito del Perú, Banco Financiero,
Interbank, Scotia Bank.
EL SALVADOR • Banco Cuscatlán, Banco Agrícola,
HSBC Bank.
PORTUGAL • Banco Espirito Santo S.A., Banco Banif,
Millennium BCP.
ENGLAND • The Royal Bank of Scotland, HSBC
Bank P.L.C., Deutsche Bank.
PUERTO RICO • Banco Popular de Puerto Rico.
FINLAND • Nordea Bank.
SINGAPORE • Standard Chartered Bank, HVB Ag.,
Deutsche Bank, Commerzbank A.G.
FRANCE • Crédit Industriel et Commercial, BNP
Paribas Group, Société Générale.
SPAIN • Banco Sabadell, Grupo Banco Popular, La
Caixa.
GERMANY • Commerzbank A.G., Standard Chartered
Bank Ghmb, HVB A.G., Deutsche Bank, Dresdner
Bank A.G.
SWEDEN • Nordea Bank, Svenska Handelsbanken.
GUATEMALA • Banco Industrial, Banco GT
Continental, Banco Agromercantil.
URUGUAY • Banco de la Nación Argentina, Banco
Credit Uruguay.
HOLLAND • Commerzbank A.G.
U.S.A. • Standard Chartered Bank, JP Morgan Chase
Bank, Wachovia Bank, Citibank N.A, HSBC Bank,
Deutsche Bank A.G., Commerzbank A.G.
HONDURAS • Banco Atlántida, Grupo Financiero
Ficohsa, Banpais, Banco Continental.
SWITZERLAND • Commerzbank Ag., BNP Paribas.

Semester Report First Half 2008

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